MITSUBISHI ELECTRIC Changes for the Better

The Internet of Things (IoT) has long since become a key technology for modern companies. Machines and devices continuously collect data and exchange it automatically, securely, and in real time via IoT platforms. Intelligent networking of processes makes it possible to shorten production times, plan maintenance in advance, and redesign entire business processes.

What is IoT?

The Internet of Things describes the digital networking of physical objects such as machines, systems, or vehicles. These devices are connected to each other via the Internet, exchange data independently, and react automatically to certain conditions. The definition of the Internet of Things encompasses not only the technical connection, but also the targeted use of the resulting data. Companies use IoT to automate business processes, make decisions based on real-time data, and make processes more efficient. In industry, IoT enables seamless process chains, greater transparency in manufacturing, reduced downtime, and better planning.

What technologies have made the IoT possible?

The IoT is supported by a range of modern technologies that complement each other and together create an intelligent, networked infrastructure.

Sensory analysis

Modern sensors continuously measure physical variables such as temperature, pressure, movement, or humidity. They provide the raw data needed for analysis, automation, and decision-making.
Standards such as Wi-Fi, mobile communications (5G), or LPWAN variants such as NB-IoT and LoRaWAN enable wireless communication between devices—reliably, quickly, and even over long distances.
The cloud provides scalable computing resources and storage space for centrally processing and storing large amounts of data and making it accessible for analysis.
These systems collect, process, and visualize the recorded data and serve as an interface between the networked devices and the company applications.
This involves processing data directly at the point of origin—for example, in a machine. This reduces latency, relieves the burden on networks, and enables rapid responses.
AI algorithms recognize patterns in data, make predictions, and support automated decisions, which can optimize processes and prevent failures.
Encryption, authentication, and access controls ensure that IoT systems are reliably protected against unauthorized access and cyberattacks.

How IoT connects machines and changes processes

In modern production environments, machines are increasingly networked with each other. They exchange status information in real time, automatically adjust processes, and respond flexibly to changes. This results in production lines that can be adapted to smaller batch sizes or short-term orders without long changeover times. The continuous flow of information reduces errors and enables more targeted use of resources. For companies, this means greater transparency, lower operating costs, and greater reliability.

In addition, IoT opens up the possibility of analyzing production data over the long term and identifying trends, enabling continuous process improvement. Consistent data transparency also supports collaboration between different departments and locations.

Logistics, industry, infrastructure – IoT in practical use

The potential of IoT is particularly evident in industries where devices, machines, and systems work together in a decentralized and dynamic manner. In logistics, industrial production, and public infrastructure, IoT ensures efficiency, automation, and transparency. Networking creates data streams that not only optimize processes but also enable new business models. This gives companies greater flexibility and allows them to respond more quickly to market and customer requirements.

In addition, IoT creates the basis for data-driven services such as predictive maintenance offerings or pay-per-use models. At the same time, networking facilitates compliance with quality and safety standards, as evidence and documentation are generated automatically.

IoT in logistics – transparency along the supply chain

Goods, containers, or vehicles are equipped with sensors that continuously monitor their position, condition, and temperature. IoT platforms automatically report deviations, such as delays or interruptions in the cold chain. This allows logistics processes to be planned more precisely, risks to be minimized, and customers to be informed more transparently. In addition, the data improves the accuracy of predictions, for example regarding arrival times, and helps to reduce transport costs. In the long term, this creates a more resilient and sustainable supply chain.

Real-time data also enables the optimization of routes and capacity utilization, which not only reduces costs but also lowers CO₂ emissions. Automated interfaces between suppliers, carriers, and customers make the entire supply chain more efficient and robust.

IoT in industry – Smart machines and networked manufacturing

Production machines collect and send real-time data on utilization, status, and energy consumption. Predictive maintenance prevents unplanned downtime and increases overall equipment effectiveness. Production planning becomes more flexible when IoT systems are linked to ERP or MES platforms. At the same time, the data obtained improves quality assurance, as deviations are detected at an early stage. Smaller businesses also benefit, as IoT solutions can be introduced in a modular fashion and expanded step by step.

In addition, IoT enables data-based services such as automatic inventory replenishment or adaptive machine control. This allows companies to develop new business models and secure their long-term competitiveness.

IoT in infrastructure – Intelligent systems for cities and networks

Cities are using IoT to optimize public infrastructure, for example in traffic control, waste disposal, and energy supply. Smart street lighting automatically adjusts to light conditions and traffic volume. Utility companies monitor electricity, gas, and water networks remotely to detect outages early on. This lowers operating costs, reduces energy consumption, and improves service for citizens.

In addition, smart city platforms can bundle different IoT applications and thus control traffic flows, energy consumption, and environmental factors in a central system. This not only reduces operating costs, but also improves quality of life and sustainability in urban areas.

Efficiency gains through smart networking

One of the biggest advantages of IoT is the measurable increase in efficiency. Digital networking of machines, processes, and people allows resources to be used in a more targeted manner and sources of error to be identified at an early stage. Processes can be automated and accelerated, reducing throughput times and lowering production costs. The IoT also contributes to sustainability: energy is used more efficiently, material usage is controlled according to demand, and maintenance can be planned. This makes the IoT not only a technical innovation, but also a strategic lever for ensuring long-term competitiveness.

Measurable results from practice

After introducing IoT solutions, companies report shorter throughput times, lower energy consumption, and higher machine availability. In manufacturing, production costs are significantly reduced through real-time control and preventive interventions.

In logistics, automated data flows ensure better planning, fewer empty runs, and optimized inventory levels. In addition, scrap rates and rework costs can be significantly reduced because quality problems are detected at an early stage. Personnel deployment also becomes more efficient because routine tasks can be automated and employees can be deployed specifically for value-adding activities. Customer satisfaction increases because delivery times are met more reliably and services are made more transparent.

Sustainability as strategic added value through IoT

IoT systems enable precise measurement and optimization of energy consumption. Resources such as materials, water, and energy are used according to demand, while predictive maintenance reduces wear and tear and extends the service life of machines. Optimized transport and production processes reduce CO₂ emissions and waste, and help to achieve sustainability and ESG targets. In this way, IoT combines economic advantages with ecological responsibility.

In addition, IoT solutions create the basis for transparent sustainability reports by providing reliable data on resource use. Companies can better meet regulatory requirements and demonstrate their progress to customers and investors. At the same time, digitalization opens up new opportunities for the circular economy, for example through the tracking of materials or the recycling of components.

Designing sustainable business processes

IoT creates the basis for a digital infrastructure on which processes can be continuously developed. Instead of rigid procedures, dynamic, networked business processes emerge that can respond flexibly to market changes. The ability to make decisions based on real-time data is increasingly becoming a decisive competitive advantage – for both large companies and medium-sized businesses. Those who embrace IoT early on are investing in long-term scalability, process reliability, and sustainable efficiency gains.

Challenges and risks of IoT

Opportunities come with risks. Data protection and security are particularly important, as networked systems offer potential targets for attack. Integration into existing IT and OT landscapes is also complex, as different interfaces are often used.

Added to this are questions of scalability and costs, as the full benefits usually only become apparent once the technology has been widely introduced. A lack of standards and interoperability also makes it difficult to exchange data between devices from different manufacturers. Last but not least, trained employees and acceptance within the company are needed to ensure that IoT projects can be implemented successfully.

The Internet of Things is developing rapidly. 5G is considered a key technology in this context, as it enables fast and stable connections with minimal delay. Edge computing complements this by processing data directly on machines and sensors – ideal for time-critical processes.

In combination with AI and machine learning, this results in autonomous processes and predictive analytics that increase efficiency and quality. At the same time, sustainability is becoming a driving force: IoT helps to save energy and reduce CO₂ emissions. Industrial IoT (IIoT) in particular is growing strongly and is an integral part of Industry 4.0. In addition, digital twins are gaining in importance as they enable simulations and optimizations of complex systems before changes are made in reality.

FAQ – Frequently asked questions about IoT

What does IoT mean for businesses in concrete terms?

IoT connects devices, machines, and systems so that their data can be used. This gives companies deeper insights into processes, improves workflows, and reduces costs.

What is an IoT gateway and what is it used for?

An IoT gateway connects field devices to IT systems, translates data protocols, and ensures secure communication with the cloud.

How does an IoT platform work?

An IoT platform collects, analyzes, and visualizes data from various sources and serves as a central control and optimization instance.

What role does IoT analytics play?

IoT Analytics helps to extract valuable insights from raw data — for example, for process optimization, error prevention, or automation.

Is IoT secure?

With encryption, access controls, and regular updates, IoT can be operated securely, provided that a comprehensive security strategy is implemented.

Which industries benefit most from IoT solutions?

Industry, logistics, energy, healthcare, infrastructure, and building automation are among the biggest beneficiaries of modern IoT solutions.